IRS/U.S. Department of Labor Form 5500 | Annual Return/Report of Employee Benefit Plan

• File with EFAST2

The Form 5500 Series represents a collaborative effort between the IRS, the U.S. Department of Labor, and the Pension Benefit Guaranty Corporation. With them, employee benefit plans can satisfy the annual reporting requirements of the IRS, and of Title I and Title IV of the Employee Retirement Income Security Act (ERISA.)

One of the purposes of these forms is to enforce compliance with the law and with established standards. They are also tools of research and disclosure, useful not only to the Department of Labor (DOL), but also for Congress and the private sector. On the very top of the Form 5500, it is stated quite prominently that “This Form is Open to Public Inspection”. The data derived is important for tracking trends in employee benefits and economic trends, as well as providing important input for policy makes both in and out of government.

For plan years that end on December 31st, the usual deadline for filing Form 5500 is on July 31st of the following year. If the plan’s year doesn’t end on December 31, the form must be filed by the last day of the seventh month following the closing. In a recent change regarding Form 5500, the DOL will no longer accept it in paper form. It must now be filed electronically. The ERISA also requires that the Summary Annual Report, which contains much of the information listed on the Form 5500, is to be distributed to every one of the plan’s participants.

How to Fill-in

Form 5500 is divided into ten parts.

The first part defines the plan’s fiscal year and the type of plan. Part 2 contains some of the plan’s basic information, such as it’s name, id numbers and sponsors. There are also spaces for the signature of some of those who administer the plan. In Part 3, information about the plan’s administrator is listed, while in Part 4, it must be noted if the plan’s sponsor has changed since the last filing of the Form 5500.

In Part 5, the total number of the plan’s participants at the beginning of the year is listed, and Part 6 will contain the number of participants at the end of the year. Part 6 will also subdivide latter number according to factors such as vesting and active participation.

Part 8 will list information as to relative to the plan as a provider of welfare or pension benefits, while Part 9 defines funding and benefit arrangements.

Finally, Part 10A has check-boxes to note what pension schedules are attached. Part 10B has check-boxes for any included general schedules, such as financial information, insurance information and or service provider information.